UK inflation eases more than expected to 2.8%, led by lower electricity and gas bills – business live

Key points

• James Smith, developed markets economist at ING, said double quotation mark Yes, UK inflation is set to rise again later this year, having dipped below 3% in April.
• But the data should reassure the Bank of England that last year’s food price spike hasn’t triggered a wave of second-round effects across the inflation basket.
• Like yesterday’s jobs numbers, the data questions the need for aggressive rate hikes.
• We continue to think markets are overestimating the Bank of England’s willingness to tighten policy, at current levels of energy prices.
• Investors are pricing between two and three rate rises by next spring.